Welcome to the U.S. Department of Energy’s SBIR/STTR Phase I Grant Application Guide! In the following pages, small business applicants will find step-by-step instructions for completing each section of an SBIR/STTR Phase I Grant application, along with sample documents for some components and helpful tips to assist with the application process. A key word search is available on the upper right hand side of the screen and we recommend that applicants use that function should they wish to find specific information or return to a specific topic or section of the guide. A key word search will display all of the pages on which the word appears and provide snippets of the page so that applicants may easily locate the exact information that they are seeking. The guide will also address common mistakes along the way to help applicants avoid the usual pitfalls associated with SBIR/STTR applications. But first, a little bit about the history and purpose of the programs that have come to be known as America’s Seed Fund.
History & Purpose
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are U.S. Government programs intended to assist eligible small businesses perform technology R&D. These programs were established to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy. Federal agencies with large research and development budgets set aside a small fraction of their funding for competitions specifically among small businesses. The funding is non-dilutive. The awardee small businesses keep the rights to any technology developed and are expected to pursue commercialization of the technology.
Since its inception in 1982, through FY2019, over 179,000 SBIR awards have been made totaling more than $54.3 billion. The STTR program, created in 1992 to encourage cooperative research between small businesses and research institutes, has extended this support by another $423.3 million in funding as of 2019.
To read about some of the exciting projects and small businesses that DOE has sponsored through SBIR/STTR, please visit Success Stories.
The major goals of the SBIR Program, established in 1982 by Public Law 97-219, are to:
- Stimulate technological innovation;
- Use small businesses to meet Federal R/R&D needs;
- Foster and encourage participation by socially and economically disadvantaged small businesses, and by women-owned small businesses, in technological innovation; and
- Increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth.
The major goals of the STTR Program, established in 1992 by Public Law 102-564, are to:
- Stimulate and foster scientific and technological innovation through cooperative research and development carried out between small business concerns and research institutions
- Foster technology transfer between small business concerns and research institutions
SBIR & STTR Research Topics at the Department of Energy
DOE offers more than sixty technical topics and 250 subtopics each fiscal year, spanning research areas that support the DOE mission in Energy Production, Energy Use, Fundamental Energy Sciences, Environmental Management, Cybersecurity, Energy Security, & Emergency Response, and Defense Nuclear Nonproliferation. To develop the topics, each DOE program office considers its high priority research needs and program mission, as well as the Department’s goals for the program. For more information on the related DOE program offices please visit DOE Office of SBIR/STTR Programs.
SBIR & STTR Phases and Award Amounts
lPhase I | Phase II/IIA/IIB/IIC | Phase III |
|---|---|---|
Feasibility/Proof of concept 6 to 12 months in duration Awards up to $200,000 or $250,000 | Prototyping & Demonstration Up to 2 years in duration Awards up to $1.1M or $1.6M (Phase II Only) Pursuit of commercialization | Not SBIR funding Work that derives from, extends or completes the effort of prior Phase I and II awards Pursuit of commercialization |
Although this guide is concerned with Phase I applications only, applicants may want to consider applying for Phase II, followed by Phase IIA, IIB and IIC awards if they successfully complete their Phase I project. It should be noted that Phase III represents investment in your technology from non-SBIR/STTR funding sources, e.g. commercial sales, investors, licensing and/or non-SBIR/STTR government contracts. The award amounts and purpose of each phase is outlined below.
- Phase I explores the feasibility of innovative concepted with awards up to $200,000 to be used over a 6 to 12 month duration
- Phase II is the principal R&D effort, with awards up to $1,100,000 to be used over a 1 to 2 year duration
- Second Phase II as outlined below, with awards up to $1,100,000 to be used over a 1 to 2 year duration
- Phase IIA: A Phase II awardee may request additional financial support for new R&D tasks and activities that are aligned with the original scope of work for the Phase II award. The purpose of the Phase IIA award is to allow the awardee to complete the R&D associated with initial prototype, product, or process development.
- Phase IIB: A Phase II awardee may request additional financial support for new R&D tasks and activities that extend beyond the scope of the original Phase II award. The purpose of the Phase IIB award is to assist the awardee in transitioning the innovation towards commercialization.
- Phase IIC continue research and development from a second SBIR Phase II award towards commercialization and require matching funds from a third party investor. These matching funds can be used for either (1) research and development costs NOT requested in your budget or (2) other costs associated with commercialization of the proposed innovation., with awards up to $1,100,000 to be used over a 1 to 2 year duration
Is the SBIR or STTR Program right for my company?
Before putting the time and effort into applying for an SBIR or STTR grant, it is important to determine whether or not your company is eligible. Under the SBIR/STTR Programs the applicant company must be a small, for-profit business, with 500 or fewer employees. The applicant company must also be primarily U.S.-owned, meaning at least 51% of its ownership is by U.S. citizens and/or permanent resident aliens. Small businesses that are majority-owned by venture capital operating companies, hedge funds, or private equity funds are not eligible for DOE SBIR/STTR awards.
Diversity, Equity, Inclusion and Accessibility
The SBIR/STTR Programs encourage participation by small businesses that are socially and economically (SED) disadvantaged - and/or woman-owned. For information on SBIR/STTR initiatives and program assistance related to (SED) and/or underrepresented groups, please visit the Department of Energy Office of SBIR/STTR Programs, Diversity, Equity and Inclusion web page.
Helpful Tip: A key word search is available on the upper right hand side of the screen. A key word search will display all of the pages on which the word appears and provide snippets of the page so that applicants may easily locate the exact information that they are seeking. Phase 0 Resources:
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